LPG supply ramped up to 70% of demand; focus on labour-intensive industries
image for illustrative purpose
New Delhi: The Central government has increased commercial LPG allocations to 70 per cent of pre-crisis demand, up from 50 per cent, to support industrial and commercial users hit by supply disruptions amid the Iran war.
In a directive to state chief secretaries, Oil Secretary Neeraj Mittal said an additional 20 per cent allocation would prioritise labour-intensive sectors such as steel, automobiles, textiles, dyes, chemicals and plastics, which are critical to the broader supply chain.
Priority will be given to process industries and units requiring LPG for specialised heating where natural gas cannot serve as a substitute.
The government said industries seeking the additional allocation must register with oil marketing companies and apply for piped natural gas (PNG) connections with city gas distributors. However, units where LPG use is non-substitutable will be exempt from this requirement.
States have also been urged to utilise a separate 10 per cent reform-based allocation, which, combined with the new increase, would raise total supply to 70 per cent.
Earlier, an additional 20 per cent allocation announced on March 21 prioritised sectors such as restaurants, hotels, food processing units and community kitchens. Over 37,000 5-kg free trade LPG cylinders have been distributed to migrant workers so far.
Meanwhile, Iran has indicated it may allow more Indian LPG shipments through the Strait of Hormuz following bilateral talks.
